Suncor Energy Inc. (SU) Stock Could Go Either Way

On December 03, 2019, Suncor Energy Inc. (NYSE:SU) shares lost -1.57% or -0.49 points to close at $30.66 with a thin trading volume of 3.155 million shares. It opened the trading session at $30.85, the shares rose to $31.055 and dropped to $30.59, the range by which the price of stock traded the whole day. The company now has a market cap of $47.6 billion and currently has 1.55 billion outstanding shares. Suncor Energy Inc. (SU) stock has plunged -0.78 percent of market value in 21 trading days.

SU stock’s trailing 3-year beta is 1.09, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was $2.38 share in the trailing 52 weeks. The stock’s value surged 9.62 percent year to date (YTD) compared to a decline of -5.05 percent in 52 week’s period. The firm’s shares are still trading -12.07 percent below its 1-year high of $34.87 and 18.79 percent up from 52-week low of $25.81. The average consensus ranking on the company is 2, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Suncor Energy Inc. (SU) is most likely going to rise 39.69 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $43.89-month high price target. This represents a whopping 43.15 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $36.3, which means a return possibility of 18.4 percent in comparison with the closing price of the stock of $30.66 on December 03. The lowest price set for the stock is $32.32 — just above 5.41 percent from SU share price now.

Past records have indicated that shares in Suncor Energy Inc. rose on 25 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of SU’s Q4 earnings on February 05. Analysts are predicting revenue to climb 22.1 percent to $7.54B in the financial fourth quarter, while EPS will soar by about 28.21 percent to $0.5 per share. In the last quarter, it earnings of $0.608415913118207 per share came better than the $0.491381903501383, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $6.77B, missing the $7.51B analysts had expected. Earnings are seen to rise by -24.5 percent this year, 0.73 percent in the coming year and the trend continues by 8.29 percent every year in the next 5 years.

The stock is lingering around the initial support level of $30.48. After this, the following support is at the zone of $30.3. Up until the time the SU stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 42 on the daily chart, and this may be a cause for concern. In case the price goes below $30.3 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $30.95 level may cause a pull-back move approaching $31.23 mark.

Suncor Energy Inc. (SU) shares are trading at a P/E ratio of 12.8 times earnings posted in the trailing 12 months. The industry SU deals with has an average P/E of 14.7. Its P/B ratio is standing at 1.4X compared to the 1.1 industry average. It is additionally sporting a 1.7 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.6. Suncor Energy Inc. has a 66.2% gross profit margin, with its operating margin around 15.5%. Alongside this, the company’s net profit margin currently stands at 13.2%.